AIA's Share Correction May Be Buying Opportunity -- Market Talk

Dow Jones06-08 11:14

0314 GMT - AIA's share-price drop could be a buying opportunity, says DBS Group Research's Ken Shih in a note. The insurer's stock has fallen on worries new account-opening rules could hurt new-business growth in AIA's mainland Chinese visitor segment, he says. However, checks suggest that most of the segment's new business and renewals are paid directly from Hong Kong accounts, while source-of-funds declarations are already a standard know-your-client practice, the analyst says. This implies the segment should remain resilient. The drag from stricter rules is likely short-lived, Shih adds, citing previous instances of AIA's stock recovering strongly after falling on rule changes. DBS reiterates its buy rating and HK$74.00 target price. Shares fall 1.8% to HK$72.70. (megan.cheah@wsj.com)

 

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June 07, 2026 23:14 ET (03:14 GMT)

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